Details

Autor(en) / Beteiligte

• Beerman, Curtis

Titel

(Mortgage Exchange Corporation) The Last Word

Ist Teil von

• Mortgage banking, 1985-06, Vol.45 (9), p.79

Ort / Verlag

Washington: Mortgage Bankers Association of America

Erscheinungsjahr

1985

Beschreibungen/Notizen

• The Mortgage Exchange Corp. (MEC) serves as a clearinghouse to create a secondary market for income property loans and to help lending institutions create mortgage portfolio marketability and liquidity. Reasons for selling loans in the secondary market include: 1. to raise cash, 2. to increase portfolio yield, 3. to match assets and liabilities, and 4. to take advantage of tax benefits. Buyers in the secondary market will be looking for investment security, large sum investments that can be made quickly, and market yield without the cost of origination. MEC can: 1. analyze portfolios, 2. price mortgages, 3. assemble the necessary data, 4. find buyers, 5. minimize transfer cost, 6. assist in due diligence, 7. coordinate closings, and 8. inspect properties. Eventually, the securitization of this market will enable it to operate as efficiently as the residential secondary market.